by Christopher Freeburn | July 11, 2012 10:06 am
The turnaround at J.C. Penney (NYSE:JCP) has hit another bump in the road. Yesterday, the retail chain announced that it would lay off 350 workers from its Plano, Texas, headquarters.
Those cuts come on top of 600 jobs trimmed from the headquarters back in April, the Associated Press notes. CEO Ron Johnson said the layoffs were part of an effort aimed at “right-sizing” the headquarters staff.
They come as the retailer tries to reduce costs as it realigns its marketing and promotional strategy in the wake its disastrous “no sales” campaign. Johnson has reiterated his confidence in his new pricing plan, though the company has retreated from its strict “no sales” line and now promotes some “sales” and clearances.
The company plans to save $900 million over the next two years by reducing expenses relating to store operations and marketing.
Last month, the retailer announced that its president of just eight months, Michael Francis, had abruptly left the company. Francis had been brought in to oversee Johnson new marketing pitch. Analysts said Francis was taking the blame for the “no sales” campaign’s failure.
Shares of J.C. Penney slipped more than 1% in Wednesday morning trading.
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